Seed Co Holdings group chief executive Morgan Nzwere (left), outgoing group chairman Pat Rooney (centre) and group finance director John Matorofa pose for a photo at the company’s annual general meeting yesterday
Tinashe Makichi : Business Reporter
Listed seed producer, Seed Co Holdings Limited experienced a 27 percent decrease in sales of winter cereals across the main markets of Zimbabwe and Zambia. Seed Co group chief executive Morgan Nzwere told the company’s annual general meeting yesterday that the decline in sales in the first quarter was due to low water levels for irrigation due to El Niño effects from last season and general power shortage particularly in Zambia.He said maize sales are still to commence in earnest and stocks have been sent to the market earlier than normal in view of expected demand.
“Indications are that there will be significant input programmes to alleviate hunger following the El Niño conditions of last season in Zimbabwe, Zambia and Malawi
“NGO activity is expected to increase due to the hunger prevailing across Southern Africa,” said Mr Nzwere.
He said overheads are in line with budget and six percent lower than prior year while the group’s debt collection is progressing well with slightly over $13 million having been collected since year end.
Mr Nzwere said despite the progress made in debt collection, redemption of vouchers in Tanzania is, however, slow with $1,1 million still outstanding while Government attention in Zambia has been distracted by the ongoing campaigning for the elections and $3 million remains outstanding.
On production, Mr Nzwere said a total of 41 800 tonnes is expected to be delivered for the production season just ended.
On expansion, he said work in Nigeria is ongoing with the major focus being on establishing a proper production base and some learning curve effects are beginning to show in some targeted areas.
Ethiopia remains work in progress while activities in the Democratic Republic of Congo have been being slowed down by the uncertain political environment. He said the Zambian kwacha devaluation has been encouraging DRC seed traders to cross borders.
The seed company is also working on replicating Prime Seeds into Zambia, Kenya, Tanzania and Malawi under the brand prime –Seed Co.
Going forward, he said early weather forecasts indicate a La Niña pattern with above normal rains which may lead to flooding in some areas.
Mr Nzwere said there is increased demand for seed across all markets to address the grain deficit and the hunger prevailing at household level.
“Inputs are expected to be prioritised by most Governments while increased NGO activity in the form of agricultural inputs is expected in view of the poor harvest last season.
“Continued growth in East Africa with further gains in market share in Tanzania and Kenyan highlands is expected,” said Mr Nzwere.
On research, Mr Nzwere said several white and yellow maize hybrids were advanced for release in West, East and Southern Africa, and as far afield as Pakistan and India.
He said these products are in the early to medium maturity series (300-600). The new white hybrids SC301 and SC419 demonstrated outstanding performance under drought, heat and normal production conditions qualifying them as climate smart.